From the official Discord:

"We are aware that counter to expectations/the event announcement, the damage cap overflow at 4.2B still does happen (though damage overall has been reduced with the +1000% bonus reduced to +250%). A fix for the overflow issue is currently still being looked into, though there is no ETA on it for now.

There is also no hard reset of this weeks leaderboards, though sweeping II2 based on old scores will no longer be possible. If you want daily packs moving forward (or ranking from next Monday onwards) you will eventually have to redo II2 with it's updated specs, so feel free to figure out the best path available for you (whether its worth waiting out the rest of the week and missing 4 days of daily sweeps for the old score ranking, or just to retake it this week)

Feel free to let us know if you find any other anomalies with regards to this weeks updates."

Would recommend joining the discord so that you can get updates: https://discord.gg/narutoen